The Sunshine Coast has been weak for the last two years and prices have gone nowhere.
Here are the numbers and charts.
Detached prices are actually DOWN 9% over the last 3 years and UP 15.9% for the last five years - which is probably no more than inflation.
Fraser Valley is now sitting at 10 MOI too. The areas outside of Vancouver like the FVREB, Okanagan, Sunshine Coast and Vancouver Island, struggled to recover from the 2008 crash. They are now showing increasing weakness. If we think the price/income ratio is out of whack for Vancouver- then it was really out of whack for many of these areas.
Incomes are lower, they don't have the benefit of wealthy migrants (except for the OK and Albertans and retirees coming from the East)- so they were more vulnerable, where-as it is very possible that Vancouver will be buoyed by higher income and the influx of money for longer.
Of course any weakening in Vancouver will damage the periphery even more-since many used their new found RE wealth to borrow against and buy a second home/ cottage/condo (just like the US!) or sold and moved and put a nice chunk in the bank.
Saturday, September 4, 2010
East will take over West in ... 2020 ?
G7 are the 7 countries who have been dominating world finance since 20th century. Most of them are from Europe and North America, plus Japan.
However, most would have known by now that some of them are no longer as great as they used to be in this 21st century.
So E7 comes about where generally people think a new economical forces will emerge out taking over G7, they are (China, India, Brazil, Russia, Mexico, Indonesia and Turkey).
According to chart below, E7 will take over G7 in 2020.
There are also stories that says this will happen in 2050. Either way, generally people expect E7 to take over G7 in due time.
However, the fact is that will NEVER happen.
What will happen instead is that 1-2 G7 members may drop out from the list because they fail to make a come back despite how hard they try. Like wise 2-3 E7 members never make it to the bar, hence E7 will NEVER be formed.
At the end, there may be a G11 formed, which has nothing to do with G7, G8 and G10.
G11 is seamlessly integrated among themselves with latest technology. Forex and logistic are no longer issues a small business owner need to worry about among these G11 member countries.
Friday, September 3, 2010
Vivat Regina!
I had to put up another picture of this fine lady, she was such a happy, photogenic historical figure :)
Well Victoria now has RE price graphs that would make a bear growl with delight.
Cast your eyes over these babies
..and they have 10.5 MOI
Clearly sanity has returned to the Victoria market. Lets hope it crosses the Georgia Straights.
"We are not amused".
Individual Income Tax Relief 2010
No. | Individual Relief Types | Amount (RM) |
1 | Self and Dependent | 9,000 |
2 | Medical expenses for parents | 5,000 (Limited) |
3 | Basic supporting equipment | 5,000 (Limited) |
4 | Disabled Individual | 6,000 |
5 | Education Fees (Individual) | 5,000 (Limited) |
6 | Medical expenses for serious diseases | 5,000 (Limited) |
7 | Complete medical examination | 5,00 (Limited) |
8 | Purchase of books, journals and magazines | 1,000 (Limited) |
9 | Purchase of personal computer | 3,000 (Limited) |
10 | Net saving in SSPN's scheme | 3,000 (Limited) |
11 | Purchase of sport equipment for sport activities | 300 (Limited) |
12 | Subscription fees for broadband registered in the name of the individual. | 500 (Limited) |
13 | Interest expended to finance purchase of residential property. Relief of up to RM10000 a year for three consecutive years from the first year the interest is paid. (i) the taxpayer is a Malaysian citizen and a resident; | 10,000 (Limited) |
14 | Husband/Wife/Alimony Payments | 3,000 (Limited) |
15 | Disable Wife/Husband | 3,500 |
16 | Ordinary Child relief | 1,000 |
17 | Child age 18 years old and above, not married and receiving full-time tertiary education | 1,000 |
18 | Child age 18 years old and above, not married and pursuing diplomas or above qualification in Malaysia @ bachelor degree or above outside Malaysia in program and in Higher Education Institute that is accredited by related Government authorities | 4,000 |
19 | Disabled child | 5,000 |
20 | Life insurance dan EPF | 6,000 (Limited) |
21 | Premium on new annuity scheme or additional premium paid on existing annuity scheme commencing payment from 01/01/2010 (amount exceeding RM1000 can be claimed together with life insurance premium) | 1,000 (Limited) |
22 | Insurance premium for education or medical benefit | 3,000 (Limited) |
Thursday, September 2, 2010
HPI is OUT- No change
GREATER VANCOUVER
For all Residential properties:
July 2010 HPI - $ 577,076
All time high HPI April 2010: $593,419
For Detached:
August 2010 $795,076.
July 2010 $793,193
For Apartments:
August 2010 HPI $385,968
July 2010 HPI $387,879
For Attached:
August 2010 HPI $489,511.
July 2010 HPI $490,995.
All changes are +/- 1% ie well within the error of sampling and modelling. We can say with confidence that House Prices in Greater Vancouver were flat from July 2010 to August 2010. At least we have moved from option 3 in my previous post to option 2).
MOI is 7
Now lets see what higher MOI brings us.
Photo Star
First of all, I want to say thanks to all of you who were so kind with your comments on the menu board. And a big thanks to all the blogs who featured it. I had more traffic than I have ever had on this site. Made me feel loved;o)
I am so happy to have 100+ followers, so you know what that means....another give away!! I'll let you know what it will be on Tuesday(since Monday is a holiday).
So on to today's post. I told you guys about me participating in the Cultural Arts Fair with the Homemaker's club. I am going to be a demonstrator and will be showing those girls how to decorate on very little money:o) Along with the demonstrations, we have a chance to showcase our crafts, with the chance of winning and moving on to State.
I saw this sweet little star over at Trey and Lucy. I knew that I had to make one and enter it. Here's mine:
The star came from Hobby Lobby, and right now their Wall decor is 50% off. And their scrapbook paper as well:o)
My star varies slightly from the original. Mine is not Christmas themed. I wanted to hang mine up year round. And I made the seams tighter. I didn't leave any gaps....just a personal preference.
I also used ink instead of craft paint to distress the edges.
I am really happy about this star....and I kinda hope that it doesn't win, so that I can keep it hanging in my house:o)
I have to take the hubs for a little minor surgery today. I'll be nursing him back to health over the weekend, but I plan on hitting a community yard sale while he's snoozing;o) Hope you guys have a safe and happy Labor Day weekend!!!!
Wednesday, September 1, 2010
Vancouver the Surreal City
Larry is out first with the Average Price again- kudos.
I usually put his chart on my blog (with his permission). However I cannot do it this time. My stomach wont let me. We suspected that prices were strong. Well answer this students of economy 101
Imagine you have something to sell and the inventory in the market place, from the previous month, is up over 20% and the sales are down nearly 40%, what should happen to the price:
1) Go down sharply
2) Stay flat
3) Go up!
Of course the right answer and the one which will give you the course credit is 1) but in fact what has happened is 3)!
We are now back up to our all time average price in detached (though condos fell). I am not going to try and explain it away for you, yes it could be higher end buyers are still buying while everyone else has dropped out of the market.
I will just suggest that state of affairs cannot continue. We will either have to have more buyers coming in to the market soon, or the price will take a sharp down-turn.
If I am wrong and September shows less sales, more inventory and higher prices...I will close the blog down because there is no point commenting on an irrational market.
After all our huffing and puffing above, we may actually see the HPI come down for August. For that we have to wait for the GVREB numbers.
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